Dry Bulk Carriers in High Demand
Shipbrokers left and right are reporting a flurry of activity in the S&P dry bulk segment over the past week. In its latest weekly report, Allied Shipbroking said that “on the dry bulk side, there was an explosion of activity this past week, with a large number of vessels changing hands. A number of these were units that were concluded earlier in the month and only now came to light, though given the volume these were still only a small percentage of the trades witnessed. The truth is that buying appetite is firmly back in the market and it seems as though most have returned with a considerable amount of bullishness in terms of price ideas. It looks as though we may well see another price rally take shape over the coming weeks, with several size/age groups already showing some firmer indications. On the tanker side, activity levels were still moving at a fairly slow pace with only a few number of vessels changing hands and those seemingly reflecting some softer price levels. It looks as though most buyers are still holding a wait and see strategy given the recent market volatility being noted”, Allied said.
In a separate note, ships’ valuations expert VesselsValue said that “bulker values have remained stable with a slight firming in Supramax values. Capesize True Frontier (179,300 DWT, May 2010, Hyundai Samho) sold for USD 29.75 mil, VV value USD 28.85 mil.
Star Jing and Star Vivian (63,800 DWT, Jul & Sep 2013, Taizhou Kouan) sold en bloc for USD 29.6 mil, VV value USD 28.0 mil.
The older Supramax Poseidon SW (55,700 DWT, Apr 2008, Oshima) sold for USD 13.0 mil, VV value USD 12.68 million”, VV said.
In the tanker segment, it has been a quiet week per VV, with values on the stable side. “VLCC Nichinori (298,400 DWT, Nov 2002, Hitachi) sold SS Due for USD 21.0 mil, VV value USD 22.6 mil. Aframax Tanker Gener8 Pericles (105,7DWT, Feb 2003, Sumitomo) sold SS Due for USD 10.3 mil, VV value USD 11.4 million. Container values have also remained stable in larger tonnage but firmed slightly in smaller tonnage. Sub Panamax container Kota Fajar (2,135 TEU, Feb 1999, Minami Nippon) sold for USD 4.2 mil, VV value USD 3.54 mil. Scrap rates have continued to firm”, VV concluded.
Meanwhile, in the newbuilding market, Allied said that “with a decent flow of newbuilding orders coming into the market this week, a rather active month came to a close in terms of new contracts given that this was during the month of August which is usually a slower moth for newbuilding contracts. Given that expectations in most sectors are for a significantly stronger final quarter for the year in terms of trading, and with better freight rates likely to be followed by a fresh rally in the secondhand market, we may well see a continuation in new ordering activity over the next couple of months, while this could well start to translate to higher price levels. This has been something that has been boiling under the surface for some time now, though to what extent it will surface over the coming weeks remains to be seen, as we have yet to see any strong market movements take place during the first couple of days of September”, the shipbroker concluded.
Finally, in the demolition market, Allied noted that “with very limited activity reported this week, a correction is now seemingly in sight, especially compared to the very firm speculative purchases that were being made during previous weeks. With buying appetite amongst breakers still holding at subdued levels, this may well turn during the final quarter of the year, especially when taking under consideration the slow flow of demo candidates still being seen in the market. The Eid holidays and bad weather conditions are surely to have created some extra disruptions this past week in the Indian Sub-Continent, though given that local steel plate prices have still been holding at relatively firm levels, scrap prices have held their ground relatively well this past week. The lack in volume does however present a difficulty in gauging the market right now, while most cash buyers have held relatively silent”.
Nikos Roussanoglou, Hellenic Shipping News Worldwide